Question

t/f The minimum attractive rate of return (MARR) for a business is independent of the internal...

t/f

The minimum attractive rate of return (MARR) for a business is independent of the internal rate of return (IRR) of an investment.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

This statement is true because-The basic concepts over facility investment evaluation, consisting of age choice because consumption, possibility cost, minimal alluring dimension on return, money flows upstairs the dodge horizon and income measures.
Methods over financial evaluation, such as the internet current virtue method, the equal indiscriminate anniversary worth method, the benefit-cost ratio method, and the inside quantity of reply method.
Factors affecting money flows, together with picking and agitation effects, price stage changes, or treatment of risk then uncertainty.
Effects regarding special strategies concerning financing concerning the resolution about projects, inclusive of kinds on financing and risk, populace insurance policies of provision then subsidies, the outcomes about challenge monetary planning, and the interplay in operational and monetary planning.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative...
Compare the alternatives using IRR (internal rate of return) method. MARR is 11% per year. Alternative 1 Alternative 2 First cost 176360 268330 Annual revenue 23960 19450 Salvage value 22310 30240 Life, years ∞ ∞ in excel please!!
Internal rate of return   For the project shown in the following​ table, calculate the internal rate...
Internal rate of return   For the project shown in the following​ table, calculate the internal rate of return ​(IRR). Then​ indicate, for the​ project, the maximum cost of capital that the firm could have and still find the IRR acceptable. Initial investment   $160,000 Year (t)   Cash inflows 1   $35,000 2   $25,000 3   $45,000 4   $45,000 5   $45,000 The​ project's IRR is? The maximum cost of capital that the firm could have and still find the IRR acceptable is?
Internal rate of return For the project shown in the following​ table, calculate the internal rate...
Internal rate of return For the project shown in the following​ table, calculate the internal rate of return ​(IRR). Then​ indicate, for the​ project, the maximum cost of capital that the firm could have and still find the IRR acceptable. The​ project's IRR is ​%. (Round to two decimal​ places.) Initial investment ​(CF 0CF0​) $110,000 Year ​(t​) Cash inflows ​(CF Subscript tCFt​) 1 $25,000 2 $50,000 3 $30,000 4 $35,000 5 $10,000
For a one-year project with an investment of $1000 and a MARR = 12%, the PW...
For a one-year project with an investment of $1000 and a MARR = 12%, the PW of this project is $150. How much is the internal rate of return (IRR) of this project?
Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual...
Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subsequent cash flows. Consider this case: Falcon Freight is evaluating a proposed capital budgeting project (project Delta) that will require an initial investment of $1,500,000. Falcon Freight has been basing capital budgeting decisions on a project’s NPV; however, its new CFO wants to start using the IRR method for capital budgeting...
2. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound...
2. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subsequent cash flows. Consider this case of Blue Llama Mining Company: Blue Llama Mining Company is evaluating a proposed capital budgeting project (project Delta) that will require an initial investment of $1,600,000. Blue Llama Mining Company has been basing capital budgeting decisions on a project’s NPV; however, its new CFO...
Billabong Tech uses the internal rate of return​ (IRR) to select projects. Calculate the IRR for...
Billabong Tech uses the internal rate of return​ (IRR) to select projects. Calculate the IRR for each of the following projects and recommend the best project based on this measure. Project​ T-Shirt requires an initial investment of $18,167 and generates cash inflows of $8,500 per year for 55 years. Project Board Shorts requires an initial investment of $28,000 and produces cash inflows of $11,500 per year for 66 years. The IRR of project​ T-Shirt is _____ (Round to two decimal​...
Internal Rate of Return Method The internal rate of return (IRR) method uses present value concepts...
Internal Rate of Return Method The internal rate of return (IRR) method uses present value concepts to compute the rate of return from a capital investment proposal based on its expected net cash flows. This method, sometimes called the time-adjusted rate of return method, starts with the proposal's net cash flows and works backward to estimate the proposal's expected rate of return. Let's look at an example of internal rate of return calculation with even cash flows. A company has...
what is the internal rate of return on an investment? what are the acceptance criteria for...
what is the internal rate of return on an investment? what are the acceptance criteria for IRR?
4. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound...
4. Internal rate of return (IRR) The internal rate of return (IRR) refers to the compound annual rate of return that a project generates based on its up-front cost and subsequent cash flows. Consider the case of Blue Llama Mining Company: Blue Llama Mining Company is evaluating a proposed capital budgeting project (project Sigma) that will require an initial investment of $800,000. The company has been basing capital budgeting decisions on a project’s NPV; however, its new CFO wants to...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT